diamonds Archives - Kahle Appraisals

“A Diamond is Forever”. DeBeers’ marketing arm created this classic tag line back in the 1950’s. Technically, diamonds are forever. They are the hardest mineral on earth and are handed down through generations….at least most of the time. There are cases, however, when your diamond may not be yours forever. Here are some of the most common ways diamonds make their way out of your possession.

Disposal disaster – Your ring sits on the kitchen sink counter while you wash your dishes. One swipe and it flies into the drain and too far down to retrieve. The teeth of the disposal munching on your diamonds, you can almost hear the sound of memories and thousands of dollars swirling down the drain. You can’t seem to get to the off switch fast enough…

Out with the trash – You have your very own secret hiding place, unique in nature. Your toddler finds it and gets a hold of your ring and thinks the trash receptacle is a good place for it. Or, another family member makes their way through hauling miscellaneous items away for the trash, your ring stash included.

Hello there, Beautiful – Leaving your jewelry out on display. Whether at home or on vacation, leaving your jewelry out in the open invites opportunists to make away with your precious pieces.

Rocks in your Pockets – Your pockets seem like a safe place to put your ring to apply lotion to your hands. Hours later (and possibly miles later, too) you suddenly remember your ring…..just to have it slip out when you were seated or slip through a hole in the stitching.

Slippery Slope – Your ring is just a tad too loose and you haven’t had the chance to get to the jeweler for resizing. One wash of the hands or pulling off of the winter gloves and your diamond ring is flung to unknown places.

Moving Madness – No thought given when you purchase that new home, you start packing and moving boxes….and later discover that your center diamond did not make it in the move. Prongs broken and memories lost.

Hopefully, none of these will happen to you. Are you prepared if it did? Make sure your valuable jewelry is scheduled on your insurance policy for the greatest protection. And be certain to keep your jewelry appraisals up to date, every 2-3 years is recommended. Hence, it’s better to be safe than sorry.

If yes, lucky you!

Wearing jewelry makes us feel treasured, especially when it’s been given by a loved one. First of all, don’t let another day pass before you insure your new gem. The last thing you want is the possibility of losing it and not being able to replace it.

Here are some tips for insuring your new (and not so new) jewels:

What is the standard coverage limit for jewelry on your homeowner’s policy? Each policy is different; and in some cases you have a choice as to what standard coverage limit you have. Talk with your insurance agent about your options.
What is your comfort level of risk? Is there jewelry in your box that you may not be absolutely broken hearted about if it were gone? Or, maybe you have a high level of risk comfort and a savings account to back it up. If you suffered a loss, you may be able to carry some of that risk by replacing your lost items with your own cash.
If you schedule your jewelry, is there a deductible to consider? Some policies have deductibles; others have $0 deductible. Check with your agent.
Should you insure your jewelry under your homeowner’s policy or a separate policy? You have a choice in the matter. Talk with your insurance agent about your options. There are even some insurance companies, i.e. Jewelers Mutual, that specialize exclusively in jewelry coverage.
BEWARE of the inflated appraisal. Inflating the value on your appraisal simply means that you will pay higher insurance premiums. As a result, many people discover too late that an insurance company will not pay more than current market value (the $ amount you paid).
Who appraised your jewelry? As important as your appraisal is, it is even more important who is appraising your jewelry. Unlike real estate appraisers, personal property appraisers are not required licensing. It’s up to you to find a credentialed jewelry appraiser who can professionally appraise your valuables. Look for an appraiser who has undertaken the accreditation requirements of a professional appraisal organization like the International Society of Appraisers or American Society of Appraisers. Expect nothing less.
Do you have a recent appraisal on your not-so-new jewelry? Whether you have your jewelry scheduled or insured under a blanket policy, get an up-to-date appraisal that will provide detailed information and a current replacement value to ensure comparable quality jewelry is replaced in case you experience a loss.

The other day as I was driving down the road, the little wrench lit up on my dashboard, indicating that it’s time for an oil change and a few other maintenance checks. On the odometer, a series of numbers show specifically what needs to be addressed. I can look up the numbers or code in the owner’s manual to see just what needs to be done. I love new technology! If only there were a simple code to let us know when our jewelry appraisal is in need of updating to reflect the current markets.

Most homeowner’s insurance policies renew in the summer months because that’s when the majority of us feel compelled to make the move and purchase a home. So today I’m throwing up the “wrench” to signal that it may be time for you to check your last jewelry appraisal. Has it been more than three years since your appraisal was issued? If so, I recommend a checkup.

Some, but not all, homeowner’s policies have inflationary protection. A percentage, such as 5%, is added to the coverage each year to help protect you as your appraisal ages and the possibility of cost to replace it if you suffer a loss increases. This can be helpful, but it’s not the most accurate way of keeping current with the diamond, gemstone and precious metals markets. And forget not the cost labor of design and manufacturing. Even if you have inflationary protection you could be underinsured, or even over insured, paying more in premiums than necessary.

The numbers or code on my dashboard showing what maintenance needs to be done reminds me of how the markets change in jewelry. Not all markets move at the same pace. Individual components need to be addressed in their own right. Diamond and gemstone markets are influenced by sourcing (mining) issues, the labor to cut, and current consumer demand. Precious metals, on the other hand, are affected not only by sourcing and the demand for jewelry, but the demand related to investments. More so than ever before, the metals markets are heavily influenced by stock market activity.

Is it time for your 100K mile checkup? If yes, seek out a professional appraiser who is in touch with the current markets. Knowing that your jewelry is properly appraised and current market values are accurately reported will give you the peace of mind that if you do suffer a loss, you are fully protected.

Is Your Diamond Forever?

If yes, lucky you!

Here are some tips for insuring your new (and not so new) jewels:

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